I am David Martin with the Martin Law Group. We help people with disability policy claims and ERISA claims. This and other videos are posted to help you understand your policy. I post a new policy term every Thursday. Subscribe to get the Edge in understanding your policy.
Other Income is a common term found in a group disability policies and it can be found in some private disability policies. It refers to monies which you receive while you're receiving disability benefits. Common examples are social security disability, Social Security, retirement, pension, or 401K benefits, workers compensation, and even a recovery for loss of wages or loss of income in a personal injury lawsuit. The list of other income benefits can be quite lengthy and so it is critical to know all of the types of other income that are on that list in your policy. The danger that arises here is you may feel that you need to take out some 401K money or start a pension benefit while you are receiving a disability benefit or waiting to receive that. You may be thinking that it will help you pay some bills and get a little bit ahead but if it reduces your long-term disability benefit you will not accomplish that. There also can be some strategy as to whether you take out a lump sum of money or a little bit over time to reduce the impact of an offset to your disability benefit most group disability policies will require you to file for Social Security disability and that will reduce your long-term disability benefit, but the surprise that can arise is if you have children under 18 and they also are entitled to receive a social security disability benefit. The child's benefit even if it does not come to you may also be an offset. For example, if a social security benefit is three thousand dollars per month and your minor child may receive another fifteen hundred dollars per month that can take a large part out of your long-term disability benefit. That is not to say that you should not apply for such benefits that are required by the policy, but you should be very much aware of those offsets before a claim arises that may be an indicator for you to obtain other disability insurance to protect yourself when evaluating offsets for dependents. Also it's important to realize that when your youngest dependent is over the age of 18 the offset for that child's portion will cease, your disability benefit will then increase again, so disputes over the offsets and the improper amount of the offset if it's asserted are common and you need to carefully evaluate those matters when they arise.
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The lawyers in our firm are focused on helping people with disability policies and ERISA claims. We want to give you the edge in understanding your policy. Today, we want to help you understand what the term “other income” means in your disability policy. Remember our ERISA attorneys and long-term disability lawyers are here to help if you run into problems. Contact us at the first sign of trouble with your disability claim. Whether you or your client needs advice before applying or appealing for ERISA benefits such as long-term disability, short-term disability, life insurance, pension, or retirement, contact an experienced ERISA disability attorney at The Martin Law Group at 800-284-9309.